The Truth About Cars » Windsorhttp://www.thetruthaboutcars.com
The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news.Fri, 13 Feb 2015 18:51:51 +0000en-UShourly1http://wordpress.org/?v=4.0.1The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news.The Truth About CarsnoThe Truth About Carseditors@ttac.comeditors@ttac.com (The Truth About Cars)2006-2009The Truth About CarsThe Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news.The Truth About Cars » Windsorhttp://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gifhttp://www.thetruthaboutcars.com
Windsor Assembly Plant Readying For Extensive Renovationhttp://www.thetruthaboutcars.com/2015/02/windsor-assembly-plant-readying-extensive-renovation/
http://www.thetruthaboutcars.com/2015/02/windsor-assembly-plant-readying-extensive-renovation/#commentsWed, 11 Feb 2015 12:00:44 +0000http://www.thetruthaboutcars.com/?p=996594FCA US’ Windsor Assembly Plant is about to undergo the most extensive renovation since the 1980s, all to ready the plant for the automaker’s new minivan. Detroit Free Press reports the plant will be shutdown for 14 weeks between mid-February through late May so that 1,500 employees and 50 contractors remake 80 percent of the […]

FCA US’ Windsor Assembly Plant is about to undergo the most extensive renovation since the 1980s, all to ready the plant for the automaker’s new minivan.

Detroit Free Press reports the plant will be shutdown for 14 weeks between mid-February through late May so that 1,500 employees and 50 contractors remake 80 percent of the 4.4-million-square-foot facility prior to the June 2015 pilot production of a next-gen Chrysler minivan that will carry on the minivan legacy once the Dodge Grand Caravan is discontinued.

Supply of current-gen minivans are expected to last until production resumes later this spring, the result of a six-day-a-week run during the second half of 2014 per plant manager Michael Brieda. As of December, FCA US has a 78-day inventory of the Chrysler Town & Country and a 67-day inventory of the aforementioned Grand Caravan.

Renovations include 822 new robots and a “skillet” line that allows floor workers to bring a body shell down or up to their height. The overhaul is part of a $2 billion investment meant to bolster the fortunes of both the automaker and the city of Windsor, Ontario, where the iconic vehicle has been assembled since 1983.

]]>http://www.thetruthaboutcars.com/2015/02/windsor-assembly-plant-readying-extensive-renovation/feed/17Editorial: A Tale Of Two Citieshttp://www.thetruthaboutcars.com/2014/11/editorial-tale-two-cities/
http://www.thetruthaboutcars.com/2014/11/editorial-tale-two-cities/#commentsMon, 10 Nov 2014 18:03:13 +0000http://www.thetruthaboutcars.com/?p=943617Two weeks ago, residents of the Windsor, Ontario region learned that Ford would not be bringing a new engine program to the two Ford assembly plants in the area. Although the small engine program was a long-shot from the start (it had apparently been destined for Mexico, but union officials tried to “steal it away”), […]

Two weeks ago, residents of the Windsor, Ontario region learned that Ford would not be bringing a new engine program to the two Ford assembly plants in the area. Although the small engine program was a long-shot from the start (it had apparently been destined for Mexico, but union officials tried to “steal it away”), news reports and enthusiastic publicity campaigns from union head Jerry Dias had given the impression that the new engine deal was all but sewn up. For residents of the auto-dependent city, with an unemployment rate of 8.9 percent (compared to 6.5 percent nationally), the decision was a blow to their collective morale.

A few hundred miles away, the stage was being set for an announcement by Honda Canada. A small car program would be coming to their plant in Alliston, north of Toronto, worth $857 million (CAD). The government would contribute about 10 percent of that. In return for the government grant,

While no new jobs will be created from this investment, it does safeguard the future of Alliston for a considerable amount of time. The Honda announcement also embodies two trends at play in Canada. The first is that big subsidies for auto manufacturing plants are on the decline for now. Ford’s small engine plant was apparently hobbled by a “big ask” from the Blue Oval. Honda’s grant, at around $85 million, is relatively small. Chrysler got nothing during their most recent attempt to get governments to chip in for a revamped Windsor minivan plant. In the end, they went ahead with Windsor anyways. Many in the pro-union camp argue that generous subsidies are the only way to attract auto investment and compete with the Southern United States and Mexico, who are keen to throw money at any auto assembly plant coming their way.

But the past year has seen Canada go from “the most expensive place to build a car” to a jurisdiction with a currency that now sits at roughly 10-15 percent lower than the U.S. dollar. This reduces labor costs while making exports more competitive for Canada, while reducing the outright need for generous government “investment” (though don’t think that will stop auto makers from trying). What was once considered a dying sector propped up by government cash now appears to have a future. Sort of.

For a stretch of time, Ontario looked to be the next Australia, with its auto manufacturing sector driven out by exorbitant costs (some of them related to a commodity-driven economy). But for now, things appear to be on the up.

]]>http://www.thetruthaboutcars.com/2014/11/editorial-tale-two-cities/feed/40Editorial: The Game Changer That Never Washttp://www.thetruthaboutcars.com/2014/10/editorial-game-changer-never/
http://www.thetruthaboutcars.com/2014/10/editorial-game-changer-never/#commentsTue, 28 Oct 2014 16:21:43 +0000http://www.thetruthaboutcars.com/?p=937138 For months, news of new investment at Ford’s two engine plants in Windsor, Ontario has been making the rounds. The supposed story was that Windsor would get a new family of small, fuel-efficient engines, and possibly even hybrid powertrains. The (wishful) thinking was that the profitable assembly of these powertrains might lead to small […]

For months, news of new investment at Ford’s two engine plants in Windsor, Ontario has been making the rounds. The supposed story was that Windsor would get a new family of small, fuel-efficient engines, and possibly even hybrid powertrains. The (wishful) thinking was that the profitable assembly of these powertrains might lead to small car production in Canada.

This past week, it emerged that Windsor would not get the new engine family, which would apparently have led to the creation of 1,000 direct jobs and as many as as 9,000 indirect jobs. Both Ford of Canada and the Ontario and Canadian federal governments could not agree on how large of a subsidy would have to be given out to bring the engine assembly to Ontario.

In the aftermath, new details are emerging. For starters, the investment was slated to go to Mexico (where small cars like the Fiesta are built), and Unifor, Canada’s auto worker union, tried to “steal the program”. Unifor’s Jerry Dias noted that the engines are destined for assembly plants in Mexico and there was a “heavy ask” from Ford in terms of subsidies.

This makes perfect sense: small cars are notoriously unprofitable, and building their powertrains in a high-cost jurisdiction makes little sense. Ford is rumored to be moving production of the Fiesta to Thailand, since Mexican assembly isn’t leading to a profitable North American-spec Fiesta. The idea of Canadian production of the Fiesta, or another small car, is a bit of a pipe dream.

On the other hand, all is not lost for Canadian manufacturing. Ford recently committed to building the next-generation Edge at their Oakville Assembly Complex, which means an additional 1,000 jobs. And the Windsor plants are currently building large V8 engines for Ford’s popular pickup trucks. Some outlets have suggested that the left-leaning Ontario government was interested in the smaller engines, since it sees fuel efficient small cars as the way of the future. But the sales data and consumer appetite for big pickups on both sides of the 49th Parallel suggest that Windsor’s current product portfolio – the 5.0L Coyote V8 and other larger engines – is the right one for current market conditions.

]]>http://www.thetruthaboutcars.com/2014/10/editorial-game-changer-never/feed/59Chrysler Shutting Windsor Plant For 12 Weeks To Re-Tool For “Stunning” Minivanhttp://www.thetruthaboutcars.com/2014/09/chrysler-shutting-windsor-plant-12-weeks-re-tool-stunning-minivan/
http://www.thetruthaboutcars.com/2014/09/chrysler-shutting-windsor-plant-12-weeks-re-tool-stunning-minivan/#commentsMon, 29 Sep 2014 16:40:05 +0000http://www.thetruthaboutcars.com/?p=921442In preparation for a “stunning” new minivan, Chrysler will shut their Windsor, Ontario assembly plant for three months to re-tool for the all new vehicle, expected to be sold exclusively as a Chrysler Town & Country. According to the Windsor Star, Chrysler is investigating how to run the plant flat out so that there is enough […]

In preparation for a “stunning” new minivan, Chrysler will shut their Windsor, Ontario assembly plant for three months to re-tool for the all new vehicle, expected to be sold exclusively as a Chrysler Town & Country.

According to the Windsor Star, Chrysler is investigating how to run the plant flat out so that there is enough minivan inventory to tide over dealers and consumers until the introduction of the new vehicle.

The shutdown is expected to bring major upgrades to the plant, which is alreading building 1,400 vans a day on three shifts. Although the nature of the upgrades has not been disclosed, it will likely be able to build more than just the minivan, since the new van will ride on a flexible architecture shared with other FCA products. However, no other products have been allocated to the plant, and Unifor, the labor union representing the plant’s workers, is reported to be hard at work to secure a future crossover for Windsor.

]]>http://www.thetruthaboutcars.com/2014/09/chrysler-shutting-windsor-plant-12-weeks-re-tool-stunning-minivan/feed/85Chrysler Minivan Plant Hiring, Outsiders Need Not Applyhttp://www.thetruthaboutcars.com/2014/08/chrysler-minivan-plant-hiring-outsiders-need-apply/
http://www.thetruthaboutcars.com/2014/08/chrysler-minivan-plant-hiring-outsiders-need-apply/#commentsTue, 19 Aug 2014 14:03:38 +0000http://www.thetruthaboutcars.com/?p=895170Chrysler will hire 60 workers at its Windsor, Ontario minivan plant, but only candidates referred by current union workers will be considered for the jobs. The Globe and Mail is reporting that only current Windsor employees can refer potential candidates for the open positions, which will be subject to a lower tier wage for the […]

Chrysler will hire 60 workers at its Windsor, Ontario minivan plant, but only candidates referred by current union workers will be considered for the jobs.

The Globe and Mail is reporting that only current Windsor employees can refer potential candidates for the open positions, which will be subject to a lower tier wage for the first 10 years. After that point, pay will rise from around $20 an hour, to the full rate of over $30 per hour.

Currently, the Windsor plant is running flat out at three shifts per day, plus overtime shifts on weekends. With minivan sales up 17 percent year to date, the extra workers will help Chrysler keep production up, and prepare for the next-generation minivan due out in 2017.

]]>http://www.thetruthaboutcars.com/2014/08/chrysler-minivan-plant-hiring-outsiders-need-apply/feed/18Windsor Assembly Re-Tooling For Next Generation Chrysler Minivanhttp://www.thetruthaboutcars.com/2014/06/windsor-assembly-re-tooling-for-next-generation-chrysler-minivan/
http://www.thetruthaboutcars.com/2014/06/windsor-assembly-re-tooling-for-next-generation-chrysler-minivan/#commentsMon, 30 Jun 2014 15:29:18 +0000http://www.thetruthaboutcars.com/?p=855937Chrysler will re-tool their Windsor Assembly Plant to build the next-generation Chrysler Town & Country, effectively securing the plant’s future for years to come. According to The Windsor Star, the re-tooling, which will begin in February and last for 13 weeks, will almost certainly transform the plant into one that is capable of building vehicles […]

Chrysler will re-tool their Windsor Assembly Plant to build the next-generation Chrysler Town & Country, effectively securing the plant’s future for years to come.

According to The Windsor Star, the re-tooling, which will begin in February and last for 13 weeks, will almost certainly transform the plant into one that is capable of building vehicles based on a new, front-drive flexible architecture. The new minivan is expected to ride on this architecture, with a new crossover also sharing the same underpinnings.

That would leave Windsor in a prime position to build the new vehicle, which would go into production in 2017. While Chrysler walked away from a request for a $1 billion subsidy package, the prospect of another vehicle added to Windsor could mean that FCA and various levels of the Canadian government could be back at the bargaining table fairly soon.

]]>http://www.thetruthaboutcars.com/2014/06/windsor-assembly-re-tooling-for-next-generation-chrysler-minivan/feed/16Re-Tooling Could Give Clues To Chrysler Minivan Plant’s Fatehttp://www.thetruthaboutcars.com/2014/05/re-tooling-could-give-clues-to-chrysler-minivan-plants-fate/
http://www.thetruthaboutcars.com/2014/05/re-tooling-could-give-clues-to-chrysler-minivan-plants-fate/#commentsWed, 21 May 2014 10:30:47 +0000http://www.thetruthaboutcars.com/?p=827386While the exact location of the next Chrysler minivan is still up in the air, some clues as to whether it will stay in Windsor, Ontario could be found in the plant’s re-tooling time. According to the Windsor Star, Unifor Local 444 President Dino Chiodo said that there could be “about a two to three-month […]

While the exact location of the next Chrysler minivan is still up in the air, some clues as to whether it will stay in Windsor, Ontario could be found in the plant’s re-tooling time.

According to the Windsor Star, Unifor Local 444 President Dino Chiodo said that there could be

“about a two to three-month shutdown to retool the facility…If there is a full investment there could be a downtime associated to it…We don’t know whether it will be two weeks, four weeks, two months potentially. That’s what could be happening if there is a full refresh of the current vehicle and a full rebuild of the new vehicle that’s projected for 2016.”

While Chiodo went on to talk about the economic impacts of a long term shutdown (with certain suppliers not getting the same benefits as Unifor), the longer downtime would suggest that FCA is investing serious money in Windsor to allow it to build a new flexible architecture for not just the new minivan, but other crossovers and sedans built on the same platform. That would be a case of exchanging some short-term pain for the long term payoff of a secure future for Windsor.

While celebrating the successful turnaround for Fiat Chrysler Automobile’s Sterling Heights, Mich. plant, CEO Sergio Marchionne proclaimed the issue of upgrades made to the Windsor, Ont. plant with help from Canadian federal and provincial governments one no longer worth discussing.

Automotive News reports FCA pulled out of discussions with Canada over a $2 billion upgrade incentive package that would secure the long-term future of the plant after politicians referred to the request as “ransom” and “corporate welfare,” according to Marchionne:

Chrysler is not in the business of accepting handouts. And if provincial and federal authorities in Canada think that’s the way to attract foreign investment, I think they are in for a big shock.

It doesn’t matter. It’s gone. That chapter is closed. Fiat-Chrysler has moved on. The agenda, from my standpoint, is complete.

Regarding Sterling Heights, where the Chrysler 200 will go into production this week, the plant’s upgrade as “an apt symbol of how far Chrysler has come because of the courage and resilience of [its] people,” Marchionne explained. The plant was due to close in 2010, only to return to life through a $1 billion investment made in light of the success behind the restyled and renamed compact, and the capacity needed to fulfill demand.

]]>http://www.thetruthaboutcars.com/2014/03/marchionne-closes-chapter-on-canadian-minivan-plant/feed/46Editorial: Marchionne Settles On Minivan Plant Locationhttp://www.thetruthaboutcars.com/2014/03/editorial-marchionne-settles-on-minivan-plant-location/
http://www.thetruthaboutcars.com/2014/03/editorial-marchionne-settles-on-minivan-plant-location/#commentsTue, 04 Mar 2014 17:24:31 +0000http://www.thetruthaboutcars.com/?p=763545UPDATE: Mere minutes after our prior editorial was published Chrysler announced that they will be withdrawing their request for funding from the Canadian government, and “…confirmed its intention to begin to allocate to our Windsor, Ontario plant the development and industrialization of the next “people carrier” architecture (the so-called next minivan and derivatives)” We are […]

UPDATE: Mere minutes after our prior editorial was published Chrysler announced that they will be withdrawing their request for funding from the Canadian government, and

“…confirmed its intention to begin to allocate to our Windsor, Ontario plant the development and industrialization of the next “people carrier” architecture (the so-called next minivan and derivatives)”

The biggest news for North America’s auto industry was announced at Geneva, and it wasn’t a new product debut. According to Automotive News, FCA CEO Sergio Marchionne has decided on a location for the next assembly plant, and things aren’t looking great for the current plant in Windsor, Ontario.

Claiming that the merger between Fiat and Chrysler “flattened the world out completely”, Marchionne reportedly dismissed the idea of national loyalty (Marchionne is a naturalized Canadian), telling reporters

“…it will become evident over the next 24 to 48 hours that we have taken a position, and life will go on. I think the decision has been made. We’re in the position of finalizing the choice. We’re pretty well done.”

Marchionne has been lobbying both the Ontario and Canadian federal government for a reported $700 million in funds, the single largest amount aside from Chrysler’s 2009 bailout package. Marchionne said that countries competing for auto production have an “…obligation to match and effectively equal what the competition is offering” in terms of subsidies, suggesting that both levels of government ought to offer competitive subsidies to keep the minivans in Windsor.

For a country f 35 million people, this is unrealistic. Canada simply cannot compete with the handouts being offered by the United States and Mexico, which are de rigueur for any auto maker looking to set up a plant (or re-tool an existing one). A relatively high Canadian dollar also contributes to high labor costs, something that can easily be remedied by moving production to the southern United States (where it will be reduced to $14-$16 per hour, or roughly half of what it costs in Canada), or Mexico, where workers would earn just a few dollars per hour.

Labor costs aside, Mexico is looking like the most appealing choice for the new vans. FCA has the capacity in Mexico to build the new vans, thanks to the Dodge Journey’s move to the Sterling Heights, Michigan plant, and the Fiat 500’s move to Poland. Along with NAFTA, Mexico has a free trade agreement with the European Union, allowing FCA to export cars to a broad range of markets. And with planned upgrades to a flexible line, this could mean anything from the new minivans to a crossover to a new sedan. The timing of the van’s launch also coincides with the end of Chrysler’s contract with Unifor (formerly the CAW), allowing them to make a clean break from Windsor.

Assuming Chrysler does leave Windsor, it will herald the start of a painful, Australia-style exodus from Southern Ontario for the Detroit Three. GM’s Oshawa plant is almost certainly the next plant to close, which will devastate the working-class town that has built itself around GM. That will leave just one plant for each American OEM- the GM CAMI plant in Ingersoll, the Ford plant in Oakville and the FCA plant in Brampton as the sole remnants of Detroit’s Canadian automotive assembly sector. On the other hand, Ontario’s three non-unionized transplants, operated by Honda and Toyota, don’t appear to be going anywhere.

]]>http://www.thetruthaboutcars.com/2014/03/editorial-marchionne-settles-on-minivan-plant-location/feed/60Editorial: A Radical Solution To Canada’s Auto Industry Investment Problemhttp://www.thetruthaboutcars.com/2014/02/editorial-a-radical-solution-to-canadas-auto-industry-investment-problem/
http://www.thetruthaboutcars.com/2014/02/editorial-a-radical-solution-to-canadas-auto-industry-investment-problem/#commentsWed, 19 Feb 2014 17:17:22 +0000http://www.thetruthaboutcars.com/?p=748889FCA CEO Sergio Marchionne took to The Globe and Mail‘s editorial pages to make his case for government investment in Chrysler’s assembly plants in Canada. Marchionne is seeking government funds to upgrade the Brampton plant (which builds Chrysler’s rear-drive cars) and the Windsor plant (which builds minivans, and would be upgraded as a flexible plant) as […]

FCA CEO Sergio Marchionne took to The Globe and Mail‘s editorial pages to make his case for government investment in Chrysler’s assembly plants in Canada. Marchionne is seeking government funds to upgrade the Brampton plant (which builds Chrysler’s rear-drive cars) and the Windsor plant (which builds minivans, and would be upgraded as a flexible plant) as part of a $3.6 billion investment.

For readers of TTAC, the facts and figures will be familiar. Marchionne correctly asserts that of the $42 billion in recent automotive investment in the NAFTA zone over the past 5 years, just $2.4 billion has come to Canada. According to Marchionne, this new Chrysler investment would be larger than anything Canada has seen in recent years, securing thousands of jobs and the future of both plants for years to come. All it will cost is a reported $700 million.

Marchionne is correct in asserting that “every global automotive jurisdiction around the world” is giving significant handouts to auto makers, Canada is a small player globally, and cannot afford to keep pace with the United States and Mexico, which foot as much as 50 percent of the bill for new auto plants.

At one time, building cars in Canada made sense. Legacy plants left from the pre-Auto Pact era cranked out cars in an era of Detroit 3 dominance and a relatively low Canadian dollar. Health care costs, long a bugbear of the auto makers and the UAW, were covered by the government, eliminating a major financial sore point.

Now, times have changed. NAFTA has superseded the Auto Pact, and that means auto makers can set up shop in Mexico, where workers are content to build cars for mere dollars per hour, or in the South, at $14-$16 per hour, versus the $32 per hour figure that some estimate it costs in Canada. Marchionne could even utilize capacity in Europe, thanks to a Canada-EU free trade deal and minimal tariffs in the United States, to import Chrysler vehicles if he so chose to, though that’s a far-out scenario.

The question is whether Canada can afford to play the subsidy game, with its ever-increasing stakes. The prevailing view among many pundits is a firm “no”. The $700-million figure seems outsized in relation to the 10,000 or so jobs it might save in Ontario, and there is a strong sentiment against “corporate welfare” for an industry that constantly has its hand out looking for assistance.

There is simply no assurance that upon receipt of government funds, Chrysler or any other auto maker will make a long-term commitment to Canada, rather than simply hit up the government in a few years time looking for more money. And the fact that the CAW failed to secure any product investment during the last round of contract negotiations (unlike Ford and GM) only serves to leave Marchionne in a stronger position to pick up and leave when the contract expires in 2016 (coincidentally, the same time as the new minivans are set to debut).

But one proposal, being floated by media and finance types (as well as a couple of industry figures, off the record) and others I have spoken to in the past, involves receiving equity in an auto maker in exchange for government funding – an “investment” in the truest sense. From a free market standpoint, I find the notion of “Government Motors” rather troublesome. But we live in the real world, where ideology must take a back seat to what is happening on the ground right now.

At least with some equity (such as preferred stock, like the bailout-era TARP program), the government can benefit from the upside in share price and have a seat on the board of directors. If FCA threatened to leave Canada, then the government could do something like threaten to sell their stake to a Carl Ichan or a Bill Ackman, the kind of activist investor that no company would actively court. Again, such a scenario is hypothetical, but it demonstrates the leverage that equity gives.

Viewed through that lens, the alternatives – continuing to act as an ATM for the auto industry, or telling FCA to get lost and risk losing a giant chunk of Canda’s auto industry – somehow seem less palatable.

]]>http://www.thetruthaboutcars.com/2014/02/editorial-a-radical-solution-to-canadas-auto-industry-investment-problem/feed/47Canadian Government Funds Would Safeguard Windsor For 30 Yearshttp://www.thetruthaboutcars.com/2014/02/canadian-government-funds-would-safeguard-windsor-for-30-years/
http://www.thetruthaboutcars.com/2014/02/canadian-government-funds-would-safeguard-windsor-for-30-years/#commentsThu, 13 Feb 2014 14:07:37 +0000http://www.thetruthaboutcars.com/?p=740633On the heels of reports that put a $3.6 billion pricetag on Chrysler’s investment at two Canadian plants, another Canadian outlet is reporting that the money would ensure the future of the two plants for decades to come. The Windsor Star, citing well-placed sources, claims that the Brampton Assembly Plant that builds the Chrysler 300 […]

On the heels of reports that put a $3.6 billion pricetag on Chrysler’s investment at two Canadian plants, another Canadian outlet is reporting that the money would ensure the future of the two plants for decades to come.

The Windsor Star, citing well-placed sources, claims that the Brampton Assembly Plant that builds the Chrysler 300 and Dodge Charger/Challenger would receive substantial upgrades that would hold the plant over for another decade. By contrast, the complete re-tooling of the Windsor plant to build a sedan, crossover, the next generation Chrysler minivan and a heretofore-unannounced “small minivan for international export”, would apparently safeguard Windsor’s future for thirty years.

The tradeoff for the Canadian government would be a substantial sum, which The Star claims may even be higher than the previously reported $700 million figure. The figure sought by Chrysler, which was not disclosed, is said to be the largest “ask” since the 2009 bailout, when Chrysler received just under $3 billion from both the Ontario and federal governments.

]]>http://www.thetruthaboutcars.com/2014/02/canadian-government-funds-would-safeguard-windsor-for-30-years/feed/6Editorial: Canada’s Auto Industry Is Hooked On Subsidies, And It Won’t End Wellhttp://www.thetruthaboutcars.com/2014/02/editorial-chryslers-investment-demands-prove-that-canadas-auto-industry-is-hooked-on-subsidies/
http://www.thetruthaboutcars.com/2014/02/editorial-chryslers-investment-demands-prove-that-canadas-auto-industry-is-hooked-on-subsidies/#commentsTue, 11 Feb 2014 13:00:08 +0000http://www.thetruthaboutcars.com/?p=739225Just a few short years after the Canadian and Ontario government bailed out General Motors and Chrysler, a familiar scenario is playing out along Highway 401. Chrysler is reported to be negotiating with both the Ontario and Canadian federal government regarding subsidies for their Windsor assembly plant that builds the Dodge Caravan and Chrysler Town […]

Just a few short years after the Canadian and Ontario government bailed out General Motors and Chrysler, a familiar scenario is playing out along Highway 401. Chrysler is reported to be negotiating with both the Ontario and Canadian federal government regarding subsidies for their Windsor assembly plant that builds the Dodge Caravan and Chrysler Town & Country minivans.

While auto makers like Ford and Toyota have received government money recently, the size and scope of the subsidies are said to be unprecedented. And according to reports, Chrysler is threatening to leave if they don’t get what they want. According to the Financial Post, Chrysler is looking for a total of $460 million (compared to the $71 million and $34 million received by Ford and Toyota respectively), which would represent about 20 percent of the planned $2.3 billion investment. Chrysler is said to be seeking funding for R&D work on the new vans, as well as money to revamp Windsor to a new flexible assembly plant that can build sedans, minivans and crossovers. Reports from the Windsor Star quote Ontario government officials as stating that they are in “serious negotiations” with Chrysler. When reached by TTAC Chrysler Canada refused to comment.

While the minivan market is shrinking in America, Windsor is still running flat-out, with three shifts running and both nameplates ranking among the top sellers in the segment. Chrysler is slated to transition one nameplate to a crossover while keeping the other as a traditional minivan. But Chrysler and CEO Sergio Marchionne have flip-flopped on this decision so many times that it’s tough to keep track of what was said last. As early as the end of January, Marchionne made comments that hinted at a secure future for Windsor at a launch sometime between 2015 and 2016 model years.

But the recent developments, as well as the expiration of Chrysler’s contract with Unifor (formerly the Canadian Auto Workers) could prove to create an opportunity for Chrysler to make a hasty exist from Windsor. The hardball talk is backed up by the very real fact that Chrysler has the capacity in other plants that could enable a move for their minivans. Mexico is one option, with production of the Fiat 500 moving to Poland and the Dodge Journey said to be leaving Mexico for Sterling Heights, Michigan. Either plant could be a candidate for minivan production, assuming the new vans ride on the CUSW architecture used for the Dart, Chrysler 200 and Jeep Cherokee.

Both levels of government are captivated by a desire to keep Canada’s auto industry intact, even at great expense to the taxpayer, and Chrysler head Sergio Marchionne is likely banking on this. With elections looming in the next couple of years, Marchionne and his team know that the threat of moving production to the United States or Mexico is potent enough to get the governments to acquiesce to his demands. With roughly 4,700 jobs at Windsor, Chrysler is the town’s biggest employee, and crucial electoral districts are up for grabs as well.

The wrong decision could have political consequences in tightly contested elections at both the provincial and federal levels. The negotiations with Chrysler are occurring against a gloomy backdrop for the Canadian auto industry. Production levels have been on the decline, as a strong Canadian dollar, lower labor costs and generous incentives from other jurisdictions have made Canada an unpopular choice for new assembly plants. The lion’s share of new investment has gone to the United States and especially Mexico, which has seen a boom in auto assembly plants from Japanese and European auto makers.

While a recent slump in the Canadian dollar will help Canada’s overall export picture, it’s this author’s opinion that Canada’s auto industry will eventually meet the same fate as Australia’s. The Canadian auto market is roughly the same size as Australia, and though it does not have such a competitive and fragmented selection of brands, it does share Australia’s proximity to low-cost assembly locations that have reciprocal free-trade agreements. The Minivan may stay in Windsor, given the costs associated with moving production, and Marchionne’s prediliction for blusters. But it’s this author’s opinion that when the Vitality Commitment between General Motors and the Canadian government ends in 2016, the Oshawa assembly plants will close, ending a century-long tradition of auto assembly in that town.

The move will devastate an already vulnerable municipality, but every vehicle built in Oshawa is already built at another, lower-cost assembly plant, and GM CEO Dan Akerson made up his mind long ago, calling Canada “the most expensive place to build a car“. Like Windsor, the timing of the Oshawa closure could easily coincide with the expiration of the current CAW/Unifor labor agreement, allowing for a clean break.

]]>http://www.thetruthaboutcars.com/2014/02/editorial-chryslers-investment-demands-prove-that-canadas-auto-industry-is-hooked-on-subsidies/feed/94Piston Slap: Escalading on Thin Ice?http://www.thetruthaboutcars.com/2013/11/piston-slap-escalading-on-thin-ice/
http://www.thetruthaboutcars.com/2013/11/piston-slap-escalading-on-thin-ice/#commentsWed, 06 Nov 2013 13:58:52 +0000http://www.thetruthaboutcars.com/?p=641137William (no longer TTAC’s tiburon_guy) writes: Hey Buddy, I am no longer tiburon_guy since we sold it (sad face – SM) but I do have a question that a friend asked me about. He has a 2002 Escalade EXT he bought new (demo actually, 300 miles on it) now it’s at 60k and overall no […]

Hey Buddy, I am no longer tiburon_guy since we sold it (sad face – SM) but I do have a question that a friend asked me about. He has a 2002 Escalade EXT he bought new (demo actually, 300 miles on it) now it’s at 60k and overall no major issues. He’s attached to the truck and rightfully so, as in my opinion it’s the best model Escalade created by GM.

His question is with it getting up in age (11 years) he’s worried about what to expect trouble wise down the road and if he should part with it soon or keep hold of it due to the low mileage (and garage kept since day one) so it looks pristine. The resell on this truck is pitiful but he also doesn’t want to be stranded. Have you heard any bad things about the 2002 model year of Escalade EXT? I’ve done a little digging but haven’t come up with much.

Additionally, my 2010 Ranger XLT is still kicking ass and taking names, but I wanted to know if you had heard any more of the 5.0L engine swap for our Ranger?

Sajeev answers:

Aside from the well documented piston slap problem on LS-based Vortec truck engines, there’s really nothing to worry about. Yes, it’s an older vehicle and things will always go wrong, but the old Chevy Tahoe underneath the Escalade EXT isn’t exactly striking fear into my heart. Even piston slap isn’t a deal breaker, it’s more of an annoyance that a local engine builder can fix whenever your friend wants a fresh engine…which will be a long, loooong time from now.

So what’s left? A lot of eyeballing and preventative maintenance: fluid changes, rubber product changes (vac lines, belts, hoses, etc) and other wear items that people tend to forget. If that hyperlink scares him off, he either needs a replacement vehicle or a second vehicle to ease the burden. Both can be fun and affordable if done correctly.

Now about the fantabulousness that is the Ford Ranger: the 5.0 Windsor swap’s been done many times before and this link is helpful. I especially like the job done by this guy, the attention to detail is quite excellent. Check out the interior swap from a Ford Explorer Limited, complete with all the buttons on the steering wheel, automatic HVAC and the fancy trip computer!

WOW, what a luxury truck!!!

Now were you talking about the 5.0 Coyote swap? Looks like that famously swapped Coyote Ranger has been dead in the water since the initial media buzz. Which is sad, but maybe they worked out the wiring, induction, chassis upgrades, transmission change, driveline change, drivability, accessories, HVAC plumbing, etc…or perhaps not.

And maybe you have $20,000-30,000 lying around. But if you did, you’d keep the Ranger, get an 5.0 windsor Explorer Limited for that swap, and use the remaining cash for a new 5.0 Coyote Mustang down payment. Because no matter what, you’ll need a better daily driver than a project truck.

Send your queries to sajeev@thetruthaboutcars.com. Spare no details and ask for a speedy resolution if you’re in a hurry…but be realistic, and use your make/model specific forums instead of TTAC for more timely advice.

]]>http://www.thetruthaboutcars.com/2013/11/piston-slap-escalading-on-thin-ice/feed/16A Bleak Forecast For Canada’s Auto Industryhttp://www.thetruthaboutcars.com/2013/10/a-bleak-forecast-for-canadas-auto-industry/
http://www.thetruthaboutcars.com/2013/10/a-bleak-forecast-for-canadas-auto-industry/#commentsFri, 04 Oct 2013 19:46:09 +0000http://www.thetruthaboutcars.com/?p=606057The Globe and Mail‘s Greg Keenan reported some bleak news for Canada’s auto industry today, with Canada’s auto manufacturing output set to decline by as much as 25 percent by 2020. While Canada built over 2.4 million vehicles in 2012, that number is expected to drop to 1.8 million by 2020, according to a report […]

The Globe and Mail‘s Greg Keenan reported some bleak news for Canada’s auto industry today, with Canada’s auto manufacturing output set to decline by as much as 25 percent by 2020.

While Canada built over 2.4 million vehicles in 2012, that number is expected to drop to 1.8 million by 2020, according to a report cited by Joe McCabe, president of AutomotiveCompass LLC, who spoke at a conference for the Automotive Parts Manufacturers Association of Canada.

Since 2010, auto makers have invested $42 billion in manufacturing, with Canada receiving a mere 5 percent of that. The biggest declines are expected to come at GM and Chrysler, with both companies moving key product out of their Canadian facilities. Production of the Chevrolet Camaro will move from GM’s Oshawa, Ontario plant to Michigan, while Chrysler’s axing of one of its minivan nameplates could see the end of a full three-shift schedule at its Windsor, Ontario plant.

]]>http://www.thetruthaboutcars.com/2013/10/a-bleak-forecast-for-canadas-auto-industry/feed/35Ecoboost May Put The Squeeze On Ford’s Canadian Engine Plantshttp://www.thetruthaboutcars.com/2013/02/ecoboost-may-put-the-squeeze-on-fords-canadian-engine-plants/
http://www.thetruthaboutcars.com/2013/02/ecoboost-may-put-the-squeeze-on-fords-canadian-engine-plants/#commentsThu, 28 Feb 2013 18:16:18 +0000http://www.thetruthaboutcars.com/?p=479458Ford’s plan to ramp up production of their Ecoboost engines may negatively impact the Blue Oval’s Essex engine plant in Windsor, Ontario. The Essex plant, which currently employes 800 workers and operates with three shifts, is in danger of moving to two shifts as Ford’s V8 engines are increasingly replaced by the forced-induction 4-cylinder engines. […]

Ford’s plan to ramp up production of their Ecoboost engines may negatively impact the Blue Oval’s Essex engine plant in Windsor, Ontario.

The Essex plant, which currently employes 800 workers and operates with three shifts, is in danger of moving to two shifts as Ford’s V8 engines are increasingly replaced by the forced-induction 4-cylinder engines. Essex produces the 5.0L V8 engine used in the F-150 and the Mustang.

According to the Windsor Star, the Canadian Auto Workers union says that the total volume of engines isn’t expected to decrease for 2013, but the next-generation Mustang’s likely move to an Ecoboost powertrain could bring lower demand for the V8. The addition of an Ecoboost Mustang is expected to increase its profile across the Ford lineup, with 95 percent of Ford’s cars offering it as an option (up from 90 percent currently).

On the bright side, the V8 doesn’t seem to be going anywhere. Despite the Ecoboost’s popularity, a majority of F-Series buyers opt for the V8, – heavy-duty vehicles still rely on the naturally aspirated V8 for their motivation, while the Ecoboost makes up 40 percent of F-150 sales (V6s account for 53 percent overall). Meanwhile, Ford’s Oakville plant, which assembles the Edge and Flex crossovers, is slated to get an all-new global platform and add hundreds of jobs (largely composed of previously laid-off workers).

A parts shortage has resulted in a shutdown at Chrysler’s Windsor Assembly Plant, home of the Dodge Grand Caravan and Chrysler Town & Country.

The Windsor Star reports that that Wednesday’s shifts have been cancelled, and Thursday production will go ahead on a shift-by-shift basis. 2011 saw multiple parts related shutdowns at Windsor.

Windsor produces about 1,400 minivans per day, and the plant is said to be running at full capacity. The Chrysler vans dominate the segment and are one Chrysler’s best performing vehicles outside of the Ram and Jeep brands. The addition of an “American Value Package” at $21,195 (similar to the sub-$20k Canada Value Package) should only help matters, even if it’s a loss leader.

]]>http://www.thetruthaboutcars.com/2013/02/parts-shortage-shuts-chrysler-minivan-plant/feed/15Volkswagen Routan Not Dead Yet, Just On A Long Hiatushttp://www.thetruthaboutcars.com/2012/12/volkswagen-routan-not-dead-yet-just-on-a-long-hiatus/
http://www.thetruthaboutcars.com/2012/12/volkswagen-routan-not-dead-yet-just-on-a-long-hiatus/#commentsTue, 18 Dec 2012 17:26:36 +0000http://www.thetruthaboutcars.com/?p=470599Despite rumors of its impending demise, the Volkswagen Routan will apparently resume production in summer 2013. But the big question is why Volkswagen will have halted production of the Chrysler-based minivan for nearly a year? Automotive News spoke to VW’s Scott Vazin regarding the Routan, with the news outlet reporting that VW plans “to offer […]

Despite rumors of its impending demise, the Volkswagen Routan will apparently resume production in summer 2013. But the big question is why Volkswagen will have halted production of the Chrysler-based minivan for nearly a year?

that VW plans “to offer the 2013 model year Routan” without changes and that it will continue to be assembled in Windsor. There is no set schedule for production of the Routan to restart, but it’s “a safe bet” to happen by summer, he said.

While inventory numbers were not available for the Routan, the vehicle hasn’t been produced since July, and sales were down 17 percent year over year. The year-long gap in production is puzzling to say the least, but the missing inventory numbers are a giant “X’ factor in the rationale behind VW’s decision to suspend production. A 7-12 month supply of Routans is unlikely, but if demand is so poor as to suspend production for that long, why bother carrying on with the vehicle? Only 8,882 Routans have been built in 2012, a 38 percent drop compared to 2011. Manufacturing professionals in the commentariat – we know you’re out there – please feel free to chime in with your expertise.

]]>http://www.thetruthaboutcars.com/2012/12/volkswagen-routan-not-dead-yet-just-on-a-long-hiatus/feed/45Junkyard Find: 1957 Chrysler Windsorhttp://www.thetruthaboutcars.com/2012/09/junkyard-find-1957-chrysler-windsor/
http://www.thetruthaboutcars.com/2012/09/junkyard-find-1957-chrysler-windsor/#commentsSat, 15 Sep 2012 13:00:09 +0000http://www.thetruthaboutcars.com/?p=460148It has been a while since I shared any photographs from the Brain Melting Colorado Yard, so let’s return to the amazing yard near Colorado Springs that gave us the Horizon Blue ’49 Kaiser and the ’41 Nash Airflyte. Here’s a ’57 Chrysler that’s destined to be shipped to Sweden in the near future. The […]

]]>It has been a while since I shared any photographs from the Brain Melting Colorado Yard, so let’s return to the amazing yard near Colorado Springs that gave us the Horizon Blue ’49 Kaiser and the ’41 Nash Airflyte. Here’s a ’57 Chrysler that’s destined to be shipped to Sweden in the near future.The Swedes love big American cars with lots of fins and chrome, and so this car and many others near it will be dismantled and shipped to Scandinavia by a couple of Swedish restorers who make a yearly pilgrimage to the Brain Melting Yard.The proprietor of the yard asked me to refrain from opening the hood on this car, because the hood hinges are rusty and it might be impossible to close the hood without bending the sheet metal. That means I can’t tell you for sure what engine is in this car, though I’m pretty sure it should be a 354 Poly.Everyone thinks about Cadillacs when they picture dramatic tailfins of the late 1950s, but Chrysler made some of the wildest fins of the period. Check out the thickness of these things!

]]>http://www.thetruthaboutcars.com/2012/09/junkyard-find-1957-chrysler-windsor/feed/73CAW Looking To Add New Product At Ford’s Windsor Engine Planthttp://www.thetruthaboutcars.com/2012/09/caw-looking-to-add-new-product-at-fords-windsor-engine-plant/
http://www.thetruthaboutcars.com/2012/09/caw-looking-to-add-new-product-at-fords-windsor-engine-plant/#commentsSat, 08 Sep 2012 17:09:19 +0000http://www.thetruthaboutcars.com/?p=459456Conventional wisdom would have it that the CAW is looking to ensure the future of Ford’s Oakville plant. The Flex and Edge are built at the facility, and there has been a heated debate over whether the government of Ontario should invest money into the plant to help secure new product. But according to the […]

Conventional wisdom would have it that the CAW is looking to ensure the future of Ford’s Oakville plant. The Flex and Edge are built at the facility, and there has been a heated debate over whether the government of Ontario should invest money into the plant to help secure new product. But according to the CAW, the number one priority for them is a few hundred miles down the road.

“Windsor is the No. 1 priority in our discussions right now,” said Beck, president of CAW Local 707. “We want to make sure all those people on layoff get back to work.”

Of the nearly 1,000 laid off Ford workers in Ontario, 600 of those were from the Windsor plant, and the CAW not only wants to get jobs back for them, but they are hoping to secure some new product, to ensure that the plant is safe from closing. Unfortunately, a revival of the 351 Windsor doesn’t seem to be in the cards.

]]>http://www.thetruthaboutcars.com/2012/09/caw-looking-to-add-new-product-at-fords-windsor-engine-plant/feed/14Supplier Issues Shut Windsor Until February, GM Adds Overtime At Arlingtonhttp://www.thetruthaboutcars.com/2010/01/supplier-issues-shut-windsor-until-february-gm-adds-overtime-at-arlington/
http://www.thetruthaboutcars.com/2010/01/supplier-issues-shut-windsor-until-february-gm-adds-overtime-at-arlington/#commentsFri, 22 Jan 2010 23:02:42 +0000http://www.thetruthaboutcars.com/?p=342744Automotive News [sub] quotes CAW President Ken Lawenza as saying “supplier challenges” have shut down production of the Chrysler Group’s minivan plant in Windsor, Ontario. Chrysler confirmed that the plant would be closed until February 1, but refused to elaborate on the circumstances. According to Lawenza, “the reason is because if a supplier never lived […]

Automotive News [sub] quotes CAW President Ken Lawenza as saying “supplier challenges” have shut down production of the Chrysler Group’s minivan plant in Windsor, Ontario. Chrysler confirmed that the plant would be closed until February 1, but refused to elaborate on the circumstances. According to Lawenza, “the reason is because if a supplier never lived up to their contract, then it could be legal ramifications. We let those guys hash it out legally.” The President of CAW Local 444 Rick LaPorte adds “it’s a piece for the key fob, so my understanding is that it’s a raw material issue. The good news is that it’s not an inventory adjustment problem or a lack of sales; it’s a good problem to have.” You know, relatively speaking.
In other production news, GM is adding overtime to production of Tahoe, Yukon and Escalade at its Arlington plant, as it battles low inventory levels (34 days supply and lower) for the full-sized utes. According to GM, dealers are screaming for more big SUVs, but with Ford bumping full-sized production and SUV sales falling, someone’s going to find themselves with more utes than they can get rid of in a few months.

]]>http://www.thetruthaboutcars.com/2010/01/supplier-issues-shut-windsor-until-february-gm-adds-overtime-at-arlington/feed/17Chrysler Plans Another Long Vacationhttp://www.thetruthaboutcars.com/2009/12/chrysler-plans-another-long-vacation/
http://www.thetruthaboutcars.com/2009/12/chrysler-plans-another-long-vacation/#commentsFri, 04 Dec 2009 19:03:26 +0000http://www.thetruthaboutcars.com/?p=338118Having planned to idle production plants for a mere ten days over the winter break, Chrysler is responding to weak sales by extending the holiday shutdown of several plants to three weeks or more. The WSJ reports that Chrysler’s Windsor and Brampton plants (minivans, 300/Charger/Challenger) will shut down starting December 21 and will idle through […]

Having planned to idle production plants for a mere ten days over the winter break, Chrysler is responding to weak sales by extending the holiday shutdown of several plants to three weeks or more. The WSJ reports that Chrysler’s Windsor and Brampton plants (minivans, 300/Charger/Challenger) will shut down starting December 21 and will idle through January 18. The Toledo plant (Jeep Wrangler) will also idle beginning on December 21, and will resume production on January 11. Chrysler is also said to be considering extended production shutdowns at its Detroit Viper factory (which is entering final production anyway) and an unspecified Ram plant. Unless December sales numbers turn out to be humdingers, this winter vacation could possibly go on even longer, as Chrysler struggles under falling sales and a 64-day supply inventory.